New CPEC Loan to Upgrade Entire Rail Track from Karachi to Peshawar

On Friday, Federal Minister for Reforms Ahsan Iqbal was informed that a new loan worth $8 billion from China and Asian Development Bank (ADB) has been approved to upgrade the main railway line from Karachi to Peshawar.

Minister for Planning, Development and Reforms Ahsan Iqbal worked out the details of this agreement with the relevant stakeholders. He held a briefing in which he disclosed the information that Beijing has approved a $5.5 billion concessional loan.

The loan will be used upgrade and modernize the ML-1 railway line. Rest of the $2.5 billion will be utilized to fix the Lahore to Peshawar railway track.

No further details regarding the deals were discussed since it is still in the premature phase and details are being worked out. However, he did mention that, “both loans will carry less than 2 per cent interest rate. Both are concessional loans.”

According to the previous China-Pakistan Economic Corridor (CPEC) agreement, $3.56 billion had been allocated for the improvement of the railway networks, which has now been increased to $8 billion.

It is estimated that overhauling of the railway networks in concerned cities will take up to five to six years to complete. Fast-moving trains will be accommodated with the upgrade, along with a reduced cost of production. It will ultimately lead to increased competitiveness in the local market.

Future Plans

Furthermore the aim is to connect Gwadar with Peshawar and then Havelian, Abbottabad, with Khunjerab, via the main line.

Ahsan Iqbal broke down the CPEC’s working methods into three phases as well their expected completion dates.


  • Short-term (2020).
  • Medium-term (2025 ).
  • Long-term (2030).

He further mentioned areas of interest that are part of the project:

  • Gwadar Port’s development.
  • Energy projects.
  • Road networks.
  • Industrial cooperation.

Outside Agenda To Sabotage:

Mr. Ahsan explained that India media has launched a campaign to sabotage the progress made between Pakistan and China. However the relationship between Pakistan and China remain strong and the foreign propaganda won’t change anything as $35 billion worth projects have already been initiated in the past two years.

Sports Analyst & Head of Sports Desk.

  • Wow, we will be paying for the the next 200 years for this. Which is not bad if you think about it.

    Though I sincerly hope Pakistan steel mills provides all the steel rather than Ittefaq foundry and the likes.

    • Bhutto, Zardari,nawaz shareef say tou koi umeed nahin hai, in projects say atleast Pakistan main tarraqqi tou hogi

      • Imran Khan aur kisi dosray leader sy bhe koi umeed nahe, lakin jo ho raha ha do little effort to appreciate it, keeray nikal lyna jab time aye ga.

      • Bhai g ek baat to theek hai k tarraqqi ho gi…… likin ap b dekhain k Mr. Nawaz shareef…. zardari se 10 times ziyada loot chukay hai. Yeh Cpec wala jo b project hai army ki waja se pakistan ma aya hai Is nawaz government ki waja se nahi aya. kindly Corrupt logon ko credit b nah dein wo is tareef k qabil nahi hai.

        • Bhai, every Govt loots. You know who actually is governing Pakistan. NS is getting his 20% share in Govt and looting. Remaining 80% power and looting is in invisible hands.

          • Ma yeh kehna chahta hon k hum apas ma 1 ho jayin in sab corrupt logo k kilaaf. Humain mazeed loot mafia wali government nahi chahiye. Sary pakistanio ko Jaag jana chahiye.

        • if it is due to army, then WHY THE HELL CM KPK is asking for western route from federal government???????????????????????

    • dont be such a dumb, the damn ittefaaq foundary is shut since 2004….have some research before posting..

  • اوے جھوٹو چین کا صدر تو آ ہی نہیں رہا تھا …. سرمایا کاری نہیں قرض دینے آ رہا تھا

    شکریہ راحیل شریف

  • This upgraded ML1 will also be useful for RPEC (Russia Pakistan Economic corridor). Russia wants to join by constructing railway lines from Ports Hairatan and Turghundi on Oxus river to Peshawar and Chaman via Afghanistan. Pakistan needs to coordinate with China, Russia and Iran for narrow gauge type lines because subsequently these lines will be used to connect Europe via Iran and Turkey. Otherwise it will be costly to shift containers from narrow to broad and broad to narrow gauge lines many times.

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